other comprehensive (expense)/income : / ( total ... year financial statement and dividend... ·...

CHINA HAIDA LTD.

(Incorporated in Singapore on 18 August 2004) Company Registration No. 200410428C

420 North Bridge Road #04-06 North Bridge Centre Singapore 188727

UNAUDITED FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 JUNE 2015 of 11

The Board of Directors of China Haida Ltd. is pleased to announce the consolidated results of the Group for the half year ended 30 June 2015. PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2, & Q3) HALF-YEAR AND FULL

YEAR RESULTS 1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the

immediately preceding financial year.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

合并利润报表 1 Jan 15 1 Jan 14 Variance

(Amounts expressed in thousands of Chinese Renminbi to to Increase /

Renminbi ("RMB") currency) 30 Jun 15 30 Jun 14 (Decrease)

These figures has not been audited HY2015 HY2014

RMB'000 RMB'000 %

Revenue 销售收入 135,614 191,363 (29.1)%

Cost of sales 销售成本 (123,756) (173,421) (28.6)%

Gross profit 毛利 11,858 17,942 (33.9)%

Gross profit margin 毛利率 8.7% 9.4% (0.6)%

Other income 其他收入 945 649 45.6 %

Selling and distribution expenses 营业费用 (2,593) (4,644) (44.2)%

Administrative expenses 管理费用 (6,958) (8,349) (16.7)%

Profit from operations 营业利润 3,252 5,598 (41.9)%

Finance costs 财务费用 (687) (484) 41.9 %

Profit before taxation 税前利润 2,565 5,114 (49.8)%

Taxation 所得税 (1,293) (2,106) (38.6)%

Profit after taxation 税后利润 1,272 3,008 (57.7)%

Other comprehensive (expense)/income : 其他收入 / (费用)

Currency translation differences 汇兑损益 (44) 52 (184.6)%

Total comprehensive income attributable to

equity holders of the company股东应得总利润 1,228 3,060 (59.9)%

THE GROUP

CHINA HAIDA LTD.




Explanatory Notes A Profit before taxation

The following items have been included in arriving at a profit before taxation:

1 Jan 15

to

30 Jun 15

1 Jan 14

to

30 Jun 14

HY 2015 HY 2014

Note RMB '000 RMB '000

Other income: 其他收入

- Interest income on bank deposits (1) 利息收入 76 67

- Sales of scraps (2) 废料收入 825 568

- Government Grant (3) 政府津贴 44 14

945 649

Interest expenses (4) 利息费用 (687) (484)

Foreign exchange gain - net (5) 外汇损益 836 (114)

Amortisation of lease prepayments (150) (149)

Depreciation of property,

plant and equipment (PPE) (6) 固定资产折旧费 (4,639) (4,256)

THE GROUP

分摊预付土地使用费

(1) Interest income for HY2015 was comparable to the previous period. The weighted average bank deposit rate for the

current period and the previous corresponding period had remained unchanged at 0.35% per annum.

(2) Income from sales of scraps were higher due to higher sales of aluminium wastage when cutting the aluminium panels

(3) This comprised of the following: 30 June 2015 30 June 2014

RMB RMB - a PRC government grant to Litai for its global expansion incentive 44,000 14,000

(4) For HY2015, a lower weighted average loan interest rate of 6.0% per annum was recorded as compared to 6.30% per

annum for HY2014. Despite the lower borrowing rate, higher interest expenses were incurred on the short term loan of RMB22 million for the 6 months under the current review period as compared to the interest expenses on short term loans of RMB7 million for 3 months and RMB22 million for 2 months respectively in HY2014.

(5) A net foreign exchange gain was registered for HY2015, attributed mainly to the strengthening of the US dollar against the

RMB. (6) Higher depreciation was recorded for HY2015 due to additions to PPE which were subject to depreciation during the

period under review.

CHINA HAIDA LTD.




1(b)(i) A statement of financial position (for the Issuer and Group), together with a comparative statement as at

the end of the immediately preceding financial year.

BALANCE SHEETS 资产负债表

(Amounts expressed in thousands of Chinese As at As at As at As at

Renminbi ("RMB") currency) 30Jun15 31Dec14 30Jun15 31Dec14

RMB'000 RMB'000 RMB'000 RMB'000

Unaudited Audited Unaudited Audited

Non-Current Assets 长期资产

Property, plant and equipment (1) 固定资产 61,800 65,872 259 316

Investment in a subsidiary 子公司投资额 - - 107,372 110,019

Lease prepayments 土地使用预付 11,421 11,419 - -

Current Assets 流动资产

Lease prepayments 土地使用预付 150 302 - -

Inventories (2) 存货 60,336 46,075 - -

Trade and bills receivables (3) 应收账款+票据 102,354 105,031 - -

Other debtors, deposits and 其他应收款 3,851 4,972 218 153

prepayments

Advance payments to a related party (4) 预付款-关联公司 14,135 32,595 - -

Due from a related party (trade) 应收款-关联公司-贸易 31,810 11,144 - -

Cash and bank balances (5) 货币资金-银行存款 41,980 52,655 4,571 5,019

Income tax recoverable 应退税款 - 159 - -

Total Current Assets 资产总计 254,616 252,933 4,789 5,172

Current Liabilities 流动负债

Trade payables 应付账款 26,304 26,617 - -

Income tax payable 应付所得税 1,220 - - -

Other payables and accruals 其他应付款 6,595 11,117 663 1,042

Due to a subsidiary (non-trade) 应付款-子公司 - - 2,301 2,293

Short-term bank loans 短期借贷 22,000 22,000 - -

Total Current Liabilities 负债总计 56,119 59,734 2,964 3,335

Net Current Assets 净流动资产 198,497 193,199 1,825 1,837

NET ASSETS 净资产 271,718 270,490 109,456 112,172

SHAREHOLDERS' EQUITY 股东权益

Share capital 实收资本 140,543 140,543 140,543 140,543

Statutory reserve fund 盈余公积 22,107 22,107 - -

Capital reserve 资本备用金 47,946 47,946 - -

Currency translation reserve 汇兑折算差额 (1,098) (1,054) (11,280) (8,589)

Revenue reserve/(Accumulated losses) 未分配利润 / 亏损 62,220 60,948 (19,807) (19,782)

TOTAL EQUITY 股东权益合计 271,718 270,490 109,456 112,172

THE GROUP THE COMPANY

CHINA HAIDA LTD.




1(b)(i) A statement of financial position (for the Issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year.

(1) For HY2015, lower fixed assets were recorded due to certain assets which had been fully depreciated. During the current

period under review, there was an addition to PPE of approximately RMB0.57 million due to the purchase of various machinery and equipment for the factory in our wholly-owned subsidiary, Jiang Litai Decorative Materials Co., Ltd. (‘Litai’).

(2) Higher inventory was registered as at 30 June 2015 mainly because of the slower than anticipated demand of the aluminium panels by the customers.

(3) For HY2015, trade receivable balances appeared lower as compared to FY2014 because of the lower sales for the current period under review. Debtors’ turnover of average 139 days had increased as compared to an average of 112 days as at 31 December 2014, due mainly to slower collections.

(4) As at 30 June 2015, there was an advance payment of approximately RMB14.1 million to a related party for the purchase

of raw materials (31 December 2014: RMB32.6 million).

(5) Decrease in cash and bank balances was due mainly to cash used in operating activities.

1(b)(ii) Aggregate amount of group’s borrowings and debt securities.

Secured Unsecured Secured Unsecured

RMB ’000 RMB ’000 RMB ’000 RMB ’000

Amount repayable in one year or less, or on demand 7,000 15,000 7,000 15,000

As at 30 Jun 2015

THE GROUP

As at 30 Jun 2014

Details of any collaterals

As at 30 June 2015, bank loans totaling RMB7,000,000 were secured by leasehold building and land use rights with net carrying values of approximately RMB4,931,000 and RMB1,259,000 respectively (net carrying values as at 31 December 2014 were RMB5,239,000 and RMB1,278,000 respectively). Interest was charged at a weighted average rate of 6.0% (31 December 2014: 6.3%) per annum.

CHINA HAIDA LTD.




1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of

the immediately preceding financial year.

CONSOLIDATED CASH FLOW STATEMENT

(Amounts expressed in thousands of Chinese

Renminbi ("RMB") currency)

These figures have not been audited. 2015 2014

RMB'000 RMB'000

Cash flows from operating activities

Profit before taxation 2,565 5,114

Adjustments for:

Amortisation of lease prepayment 150 149

Depreciation of property, plant and equipment 4,639 4,256

Interest expenses 687 484

Interest income (76) (67)

Unrealise translation (gain) / loss (40) 71

Operating profit before working capital changes 7,925 10,007

Inventories (14,261) (16,223)

Trade and bills receivables 2,677 (15,012)

Other debtors, deposits and prepayments 1,280 (2,342)

Trade and other payables (4,835) 5,707

Balances with related parties (2,206) 28,013

Cash (used in) / generated from operations (9,420) 10,150

Income tax paid (73) (511)

Interest income received 76 67

Interest paid (687) (484)

Net cash (used in) / generated from operating activities (10,104) 9,222

Cash flows from investing activity:

Purchase of property, plant and equipment (571) (27)

Construction in progress - (2,846)

Net cash used in investing activities (571) (2,873)

Cash flows from financing activity:

Proceeds from short-term bank loans 22,000 15,000

Repayment of short-term bank loans (22,000) (15,000)

Net cash from financing activities - -

Net (decrease) / increase in cash and bank balances (10,675) 6,349

Cash and bank balances at the beginning of period 52,655 48,833

Cash and bank balances at the end of period 41,980 55,182

THE GROUP

6 months ended 30 June

CHINA HAIDA LTD.




STATEMENTS OF CHANGES IN EQUITY (Amount expressed in thousands of Chinese Renminbi (“RMB”) currency).

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than

those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

Statutory Currency

Share reserve Capital translation Revenue

GROUP capital fund reserve reserve reserve Total

RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

Balance at 1.1.2014 140,543 21,432 47,946 (974) 45,952 254,899

Total comprehensive income for the

period - - - 52 3,008 3,060

Balance at 30.6.2014 140,543 21,432 47,946 (922) 48,960 257,959

Balance at 1.1.2015 140,543 22,107 47,946 (1,054) 60,948 270,490


period - - - (44) 1,272 1,228

Balance at 30.6.2015 140,543 22,107 47,946 (1,098) 62,220 271,718

Currency

Share translation Accumulated

COMPANY capital reserve losses Total

RMB’000 RMB’000 RMB’000 RMB’000

Balance at 1.1.2014 140,543 (4,494) (19,618) 116,431


period - 2,626 (14) 2,612

Balance at 30.6.2014 140,543 (1,868) (19,632) 119,043

Balance at 1.1.2015 140,543 (8,589) (19,782) 112,172

Total comprehensive expenses for the

period - (2,691) (25) (2,716)

Balance at 30.6.2015 140,543 (11,280) (19,807) 109,456

Attributable to equity holders of the Company

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs,

exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

There was no change in the issued and paid-up share capital of the Company since the previous financial period ended 30 June 2014. The total number of issued shares excluding treasury shares of the Company was RMB140,543,000 comprising 254,880,660 ordinary shares as at 30 June 2015 and 30 June 2014 respectively. The Company has no outstanding convertibles as well as treasury shares as at 30 June 2015 and 30 June 2014.

CHINA HAIDA LTD.




1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

As at 30 Jun 2015 As at 30 Jun 2014

Total number of issued shares 254,880,660 254,880,660

less: Treasury shares - -

Total number of shares excluding treasury shares 254,880,660 254,880,660

THE COMPANY

1(d)(iv) A statement showing all sales, transfers, disposals, cancellation and/or use of treasury shares as at the end of

the current financial period reported on.

Not applicable. 2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice.

The figures have not been audited nor reviewed by the auditors.

3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis

of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer’s most recently audited

annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as in the latest annual audited financial statements for the financial year ended 31 December 2014 except as described in section 5 below.

5. If there are any changes in the accounting policies and methods of computation, including any required by an

accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

The Group has adopted all the applicable, new and revised Singapore Financial Reporting Standards (“FRS”) including related interpretations (“INT FRS”) which became effective for the financial statements of the Group and of the Company for the financial year beginning on or after 1 January 2015, where applicable. The adoption of the new and revised FRS and INT FRS did not give rise to any adjustments to the opening balance of the accumulated profits of the Group and of the accumulated losses of the Company for the prior periods or changes in comparatives. The adoption of the new and revised FRS and INT FRS did not give rise to any significant changes to the financial statements.

6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding

period of the immediately preceding financial year, after deducting any provision for preference dividends.

1 Jan 2015 1 Jan 2014 to 30 Jun 2015 to 30 Jun 2014

RMB'000 RMB'000

Profit after taxation / 净利润 1,272 3,008

Weighted average number of ordinary shares on issue

applicable to earnings / 普通股总计 254,880,660 254,880,660

Earning per ordinary share (RMB cents) /每股收益（分）

- Basic / 基本收益 0.5 1.2

- Diluted / 稀释收益 0.5 1.2

THE GROUP

CHINA HAIDA LTD.




7. Net asset value (for the Issuer and group) per ordinary share based on the total number of issued shares

excluding treasury shares of the issuer at the end of the:

(a) current financial period reported on; and (b) Immediately preceding financial year.

As at As at As at As at

30 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014

Net assets (RMB'000) / 净资产 271,718 270,490 109,456 112,172

Net asset value per ordinary share based on the total number of

issued shares excluding treasury shares as at the end of the

respective periods (RMB cents)

106.6 106.1 42.9 44.0

The Group The Company

Net asset value per ordinary share was calculated based on the 254,880,660 issued ordinary shares excluding treasury shares as at 30 June 2015 and 31 December 2014 respectively.

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. It must include a discussion of the following:

(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial

period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the

current financial period reported on.

REVIEW OF PERFORMANCE

A Consolidated Comprehensive Statement of Income (HY2015 vs HY2014) (i) Revenue

Compared to HY2014, the Group’s total revenue decreased 29.1% or RMB55.8 million, from approximately RMB191.4 million to RMB135.6 million, attributed to lower sales of aluminium panels within the PRC as well as for the overseas markets. Total revenue comprised domestic sales RMB74.1 million or 54.7% (HY2014: RMB98.2 million or 51.3%) and export sales RMB61.5 million or 45.3% (HY2014: RMB93.2 million or 48.7 %), a decline of 24.5% and 34.0% respectively. The decline and stringent control on governmental expenditure on large infrastructure projects within the PRC had continued from the last financial year and this had impacted the demand and sales of our aluminium panels. Domestic sales of both Aluminium Single Panels (‘ASP’) and Aluminium Composite Panels (‘ACP’) had fallen and income from auxiliary sales of paint spray services had also declined. Overseas orders for ACP were affected by the general slowdown and uncertainty in the global economy which had contributed to the lower export sales of ACP in HY2015.

(ii) Gross Profit

Gross profit decreased by approximately RMB6.1 million or 33.9%, from RMB17.9 million to RMB11.8 million due to lower sales. Gross profit margin had also declined marginally, from 9.4% in HY2014 to 8.7% in HY2015.

(iii) Operating Expenses

Total operating expenses decreased by approximately RMB3.4 million or 26.5%, from RMB13.0 million to RMB9.6 million, attributed to the decrease in both Administrative expenses and Selling and distribution expenses.

CHINA HAIDA LTD.




Selling and distribution expenses decreased by approximately 44.2% or RMB2.0 million, from RMB4.6 million to RMB2.6 million attributed mainly to lower payroll and transport expenses of RMB0.2 million and RMB1.7 million respectively. Administrative expenses fell by approximately 16.7% or RMB1.4 million, from RMB8.3 million to RMB6.9 million, due mainly to lower payroll and staff welfare expenses of approximately RMB0.5 million and a net gain in exchange of RMB0.9 million.

(iv) Other Income

Please see explanatory note A to Part 1(a).

(v) Finance Costs

For HY2015, a lower weighted average loan interest rate of 6.0% per annum was recorded as compared to 6.30% per annum for HY2014. Despite the lower borrowing rate, higher interest expenses were incurred on the short term loan of RMB22 million for the 6 months under the current review period as compared to the interest expenses on short term loans of RMB7 million for 3 months and RMB22 million for 2 months respectively in HY2014.

(vi) Income Tax

The income tax rate applicable for Litai is 25%. The effective tax rate of approximately 50.4 % was recorded for HY2015 due to certain expenses which were not tax deductible and were added back for tax purposes (HY2014: 41.2%).

(vii) Net Profit After Taxation

With lower sales and lower operating expenses, the Group achieved a net profit of approximately RMB1.3 million for HY 2015 as compared to RMB3.0 million for HY2014.

B Consolidated Balance Sheet (30 June 2015 versus 31 December 2014)

Total current assets increased by approximately 0.7%, or RMB1.7 million, from RMB252.9 million as at 31 December 2014 to RMB254.6 million as at 30 June 2015. This was primarily due to the following factors: i) Increase in inventories approximately RMB14.3 million due to slower than anticipated demand of the aluminum

panels by the customers. ii) Increase in amounts due from a related party (trade) RMB20.7 million. iii) Decrease in trade and bills receivables approximately RMB2.7 million. iv) Decrease in other debtors, deposits and prepayments approximately RMB1.4 million. v) Decrease in advance payments to a related party for purchase of raw materials approximately RMB18.5 million. vi) Decrease in cash and bank balances RMB10.7million due to cash used in operating activities.

Total current liabilities amounted to RMB56.1 million as at 30 June 2015, representing a decrease of approximately RMB3.6 million, or 6.0% as compared to 31 December 2014. This was due mainly to the decreases in trade payables of approximately RMB0.3 million and other payables and accruals of approximately RMB4.5 million offset by an increase in income tax payable of RMB1.2 million respectively.

C. Consolidated Cash Flow Statement

Cash and bank balances as at 30 June 2015 was approximately RMB42 million, a decrease of approximately RMB10.7 million as compared to the balance RMB52.7 million as at 31 December 2014. This was attributed mainly to net cash used in operating activities of RMB10.1 million and cash used in the purchase of various machineries and equipment of approximately RMB0.6 million.

CHINA HAIDA LTD.




9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between

it and the actual results.

Not applicable. 10. A commentary at the date of the announcement of the significant trends and competitive conditions of the

industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

Stringent governmental control coupled with prudent spending on large infrastructure projects within the PRC will continue to impact on the domestic demand of aluminium panels in the building and construction industry. Economic uncertainty in the global markets will continue to affect our future export sales. To remain competitive, the Group will focus to enhance the quality of our panels, innovate and introduce new designs to meet the demands of our customers. We will remain vigilant on internal cost control, cash management and continue to safeguard the Group’s assets.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on?

None (b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

Not applicable.

(d) Books closure date

Not applicable.

12. If no dividend has been declared/recommended, a statement to that effect.

No dividend has been declared / recommended for the half year ended 30 June 2015.

CHINA HAIDA LTD.




13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.

Pursuant to Rule 920(1)(a)(ii) of the Listing Manual, the details of the aggregate value of interested person transactions conducted pursuant to a shareholders' general mandate are as follows:

Aggregate value of all interested

person transactions during the

financial period ended 30 June

2015 (excluding transactions less

than S$100,000 and transactions

conducted under shareholders'

mandate pursuant to Rule 920)

Aggregate value of all interested

person transactions conducted under

shareholders' mandate pursuant to

Rule 920 (excluding transactions less

than S$100,000) for the half year ended

30 June 2015

Name of Interested Persons RMB'000 RMB'000

Jiangyin Haida Group., Ltd

-Reimbursement of electricity expenses - 1,191

-Advances/Purchase of raw materials * - (60,873)

-Purchase of raw materials - (67,805)

-Sales of paint - 2,136

Jiangyin East-China Aluminum Technology Co., Ltd.

-Spray-painting services - 16,947

-Purchase of raw materials - (435)

-Reimbursement of electricity expenses - 467

Save as disclosed above, there were no other interested persons transactions conducted for the half year ended 30 June 2015.

*Jiangyin Haida Group requires the Group to provide advances for purchases of raw materials. Such advances would beused to reduce payable for purchase transactions. The outstanding advances to Jiangyin Haida Group as at 30 June 2015: RMB14.1 million (HY2014: NIL).

14. Negative assurance confirmation on interim financial results pursuant to Rule 705(5) of the Listing Manual.

The Board has confirmed that to the best of its knowledge, nothing has come to its attention which may render the interim financial results for the half year ended 30 June 2015 to be false or misleading in any material aspect.

BY ORDER OF THE BOARD Xu Youcai Chief Executive Officer 4 August 2015

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